Pappas Realty Co... "Commercial Real Estate...Exclusively" in Northeast Ohio since 1957

Friday, February 17, 2006

Not to be negative, but the median national per unit apartment sale price is almost three times the median price in NE Ohio. I suspect that owners in those other areas are not nearly as affected by rising fixed costs, utilities, taxes and so on. It's a real indicator on how depressed this area is. I had 27 leasing calls yesterday, three showings, and not one of them made $10/hr. The minimum amount required to meet our income qualification. If you look at Marcus and Millichap Cleveland apartment closings for 2005, the bulk of them were to out of state buyers. Ron

By Anonymous, At 8:40 AM
Ron,

Great point! The bulk of apartment sales in recent has been to out of state investors. I have seen this in my transactions as well, as in 2005 alone, almost half of my apartment sales were to investors from California and Arizona. I also concur that the per unit pricing of certain geographic areas versus Northeast Ohio is skewed dramtically, as are rents, utilities, taxes, etc...

Thank you for your comments and I look forward to hearing more informative input.

Sean

By S. Dreznin, At 9:13 AM